EVT (ASX:EVT) Buys QT Auckland for $76m- Is This Hotel Stock a Buy as It Expands Into New Zealand?

EVT: QT Auckland Deal, Bigger Growth Plan

EVT (ASX: EVT) shares slipped 2% last week despite announcing the acquisition of QT Auckland for NZ$87.5 million (~A$76 million). The 150-room premium lifestyle hotel in Auckland’s Viaduct precinct has won multiple industry awards since opening in 2020. For investors watching Australia’s tourism recovery, the question is whether this hotel, cinema, and resort operator is a buy at current levels- trading 27% below its 52-week high of A$17.99.

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EVT’s QT Brand Goes International- What the Auckland Deal Signals

The QT Auckland acquisition marks an important step in EVT’s strategy to grow its premium hotel brand beyond Australia. This deal follows QT Singapore’s opening in September 2024, the first QT outside of Australia and New Zealand, signalling management’s confidence in international expansion.

What makes this deal interesting is the capital recycling approach. EVT simultaneously announced the sale of Rydges Geelong for A$24.5 million, freeing up capital from a non-core asset to fund strategic growth. Both transactions are expected to be completed early in 2026, suggesting management is being disciplined about capital allocation rather than simply accumulating assets.

The timing aligns with EVT’s broader hotel strategy. The company recently launched EVT Connect Hospitality through the Pro-invest Hotels acquisition, worth up to A$104 million. With QT Parramatta expected in 2027 and further Southeast Asian expansion planned, management is clearly prioritising hotels as the growth engine. We believe this focus makes strategic sense given the division’s record performance.

Record Hotel Profits Meet Cinema Recovery

EVT’s hotels division has been the standout performer, delivering record revenue and EBITDA in FY25 despite weather disruptions and challenging New Zealand conditions. The division is expected to achieve another record result in FY26, marking three consecutive years of record performance, a strong signal that operational improvements are genuine rather than one-off.

The cinema business struggled in FY25 due to film supply issues following the 2023 Hollywood strikes but appears positioned for recovery. Citi analysts believe December’s performance should silence structural bears on cinemas, while FY26 is being driven by a solid holiday release cycle, with additional high-profile content expected to lift second-half earnings.

EVT reported normalised FY25 revenue of A$1.2 billion, up 1.3% year-on-year, with EBITDA of A$160.8 million, up 6.3%. While not explosive growth, this demonstrates resilience and margin improvement despite external headwinds. Management expects FY26 EBITDA to grow over the prior year.

The Investor’s Takeaway

EVT presents a mixed picture. On the positive side, shares have outperformed the ASX 200 by 8 percentage points over the past year, hotels are delivering record results, cinemas are recovering, and international expansion is gaining momentum. Trading 27% below its 52-week high, the stock appears to have pulled back despite improving fundamentals.

While the trailing P/E ratio of around 64x reflects historical impacts from the Hollywood strikes, analysts point to a more normalised forward P/E of approximately 31x to 32x for FY26 as earnings are forecast to recover. Thredbo struggled in FY25 due to poor weather. The resort saw a significant turnaround in the 2025 winter season, with EBITDA growing 28.6% in the first quarter of FY26, thanks to improved snow conditions and new snowmaking technology. Cinema recovery remains dependent on film quality and release timing, factors outside management’s control.

For growth-oriented investors comfortable with entertainment sector volatility, the pullback from highs could represent an attractive entry point as the dual recovery in hotels and cinemas plays out. Conservative investors may prefer waiting for evidence that FY26 cinema releases are delivering expected results before committing capital.